Illinois State Treasurer Alexi Giannoulias unveiled the state's new Cultivate Illinois program Monday at the Rock Island Farm Bureau office in Moline, where he and Illinois Farm Bureau representatives - who helped revamp the annual agriculture loan program - discussed the changes.

After discovering evidence of wrongdoing in the nation's largest state-backed agriculture loan program he implemented new safeguards to save state tax dollars and ensure farmers can receive financial assistance. The new program allows financial institutions to offer lines of credit so farmers can access cash for seed, fertilizer and other annual operating expenses.

A review of the program found violations and abuse of state statute going back to 2000 when the state began allowing lenders to open lines of credit for farmers, instead of just low-interest, term-loans for annual operating costs.

Many of the 200 participating financial institutions were not dispersing all of the money available so portions of the credit lines never made it into the hands of the intended farmers, the review showed. That cost the state millions of dollars that could have been invested in other ways.

To stem the abuses, Giannoulias suspended the credit lines a year ago. He lifted the ban July 1 after working with farmers, lenders and advocates to find a safer way to offer lines of credit so farmers can access money for operating costs.

Lenders now must document the use and distribution of funds and pay a higher rate of interest on funds that are not lent to farmers. The treasurer's office has also implemented safeguards to monitor the program and a new reporting structure to document and ensure banks are complying with program guidelines.